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Aptus Value Housing Finance India, a midcap company in the finance-housing industry, has recently been downgraded to a ‘Hold’ by MarketsMOJO on October 25, 2024. This decision was based on the company’s strong long-term fundamental strength, with a 29.49% CAGR growth in operating profits.
The company has shown healthy long-term growth, with net sales growing at an annual rate of 29.19% and operating profit at 29.49%. In fact, Aptus Value Housing Finance India has declared positive results for the last 11 consecutive quarters, with its highest net sales, PBDIT, and PBT LESS OI in the last quarter.
Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, DOW, and OBV indicating a bullish trend. However, with a ROE of 16.2, the stock is currently trading at a very expensive valuation, with a price to book value of 4.5. This is significantly higher than its average historical valuations.
In the past year, while the stock has generated a return of 18.58%, its profits have only risen by 21.8%, resulting in a PEG ratio of 1.2. This suggests that the stock may be overvalued.
Moreover, there has been a decrease in promoter confidence, with promoters reducing their stake in the company by -7.12% over the previous quarter. Currently, they hold 53.97% of the company, which may signify reduced confidence in the future of the business.
In the last 1 year, Aptus Value Housing Finance India has underperformed the market, with a return of 18.58% compared to the market (BSE 500) returns of 33.56%. This further supports the ‘Hold’ rating given by MarketsMOJO. Investors may want to closely monitor the company’s performance and future prospects before making any investment decisions.